When trading with HBSwiss you need to understand how currency pairs are traded. The trading pair, as it is called, is a relationship between two assets to buy or sell coins. Some trading pairs could be a fiat currency and a cryptocurrency or it could also be a cryptocurrency to another cryptocurrency.
You could have a dollar/Bitcoin pair or an NEO/ Bitcoin pair.
Meaning of crypto to crypto pairing
The meaning of the crypto to crypto pairing is:
- In order to buy the coins, you will have to buy Bitcoin first and then transfer it to the exchange. You can then purchase the coin that you want with the Bitcoin
- The price of the coin could be in a fiat currency and the price on the exchange will be in Bitcoin. This is actually a price that will keep moving. So when you look at a chart of the coin against the fiat currency it will look pretty different from the chart of the same coin against Bitcoin.
- When you look at the technical charts they will be based on the trading pairs. This means that the currency you are looking at could be charted against Bitcoin. So if there is a fluctuation in the price of Bitcoin it may get you confused as to what is actually happening. Often the price will get adjusted to show you the changes in the Bitcoin but this may not always happen
What can you do in this case?
When you are using the charts to trade you can do the following:
- Be cautious of the fiat price because at the end when you buy or sell the coin you are actually doing it in the fiat currency
- Chart using the trading pair only from the exchange where you plan to execute the trade.
- Make an assumption that if the Bitcoin $ price is moving then the buy and sell price of Bitcoin will get adjusted to reflect the same
This could be a little complicated to start with but eventually, it will fall into place. The price should be in the local currency and you need to use the charts in order to spot the trend.
You would need trend lines in order to trade a volatile coin. The trend line is basically two lines that you draw on the chart where the upper line acts as a resistance and the lower line is the support line of the security.